Midterm Ch.17 Flashcards
Job order costing system
An accounting system that accumulates costs by job. Used by companies that manufacture unique products or provide specialized services
Job
The production of a unique product or specialized service. May be one unit or a batch of units
Process costing system
An accounting system that accumulates costs by process. Used by companies that manufacture identical units through a series of uniform production steps or processes
Job cost record
A document that shows the DM, DL, and MOH costs for an individual job.
Materials Requisition
Request for the transfer of raw materials to the production floor.
Labor Time Record
A record used to assign DL cost to specific jobs.
Predetermined Overhead Allocation Rate
Estimated overhead cost per unit of the allocation base, calculated at the beginning of the accounting period. Total estimated overhead costs/ total estimated quantity of the overhead allocation base
Allocation Base
A denominator that links indirect costs to cost objects. Ideally, the allocation base is the primary cost driver of the indirect costs.
Cost Driver
He primary factor that causes a cost to increase or decrease.
Underallocated Overhead
Occurs when the actual manufacturing overhead costs are more than allocated MOH costs.
Overallocated overhead
Occurs when the actual MOH costs are less than allocated MOH costs.
